Lost to the full withdrawal of rival Maybelline Avon UP2U from China

“Considering that the scale of 'UP2U by you' cannot enable Avon to achieve sustained and stable profit growth, we have already terminated the brand business earlier this year.” Yesterday, the reporter confirmed from Avon (China) Co., Ltd. that Avon's makeup brand " UP2U has been completely withdrawn from China by you. Its general manager in China has also left China a few days ago.

Old-fashioned direct sales companies lose retail

Industry insiders believe that the withdrawal of UP2U has mapped the failure of Avon as a veteran direct selling company to explore the retail route. “But for Avon, who has already obtained the first direct selling license, 'giving up' will no doubt be more conducive to concentrating its superior resources to 'returning to the direct sales'.”

As a veteran direct sales company, Avon had made a series of attempts to control the direct sales industry in the Mainland. In 2001, after the success of the store channel, Avon launched the “UP2U You” brand, a cosmetics brand for young women, and tested the new retail line. Its brand positioning was directed at L'Oreal’s makeup brand Maybelline.

However, Avon, who specializes in direct sales, seems to be unsuccessful in the retail market. Before withdrawing from China, “UP2U by You” has been left far behind by Maybelline, whose annual sales in the Mainland exceeded RMB 1 billion. According to the reporter's understanding, Maybelline currently has a 20% share in the domestic makeup market, and even more than 60% in many secondary cities.

Return to "Avon" main direct sales

Avon confirmed yesterday that since the beginning of this year, it has ceased to operate various products under the “UP2U You” brand, and the main reason is that “the scale of the brand's development cannot enable Avon to achieve sustained and stable profit growth”. It is understood that the brand is mainly a mid-range brand developed for the Chinese mainland market and has not been sold in other regions.

In fact, even if the Chinese retail market fails, as the company's exploration of the market, "UP2U by you" has made a corresponding contribution to Avon's investment portfolio. In the future, Avon needs to concentrate its efforts to grasp. It is undoubtedly its own line of business—the already open China direct marketing market.

Avon frankly stated that the main reason for the withdrawal of UP2U is to concentrate on creating the main brand of Avon, including the current direct selling business.

According to its responsible person, this adjustment will be more conducive to China Avon's reorganization of resources, the concentration of superior strength, and make full preparations for the full opening of single-level direct sales.

It is understood that currently, as an important part of the new business model, Avon (China) will focus its efforts on the nationwide “recruitment and recruitment” and introduce its single-level direct sales model by setting up a national consultation hotline.